Valuation - Investor's & Entrepreneur's partial commitment
Originally published: 29/09/2016 16:53
Publication number: ELQ-91746-1
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Valuation - Investor's & Entrepreneur's partial commitment

Calculate the Net Present Value (NPV) for the Entrepreneurs Commitment when Partial

OUTPUTS of the model:

- Market Risk Premium
- Market Variance

- Expected Project Cash Flow
- Project Standard Deviation of Cash Flows

- Project Beta (based on cost of project)
- Fraction of Investment that is notionally in project

- Required Percent of Equity
- Expected Cash Flow
- Standard Deviation of Cash Flow
- Outside Investor value

- Cash Flow to Entrepreneur
- CAPM Market Value Estimate of Present Value of Project
- CAPM Private Value Estimate - Partial Commitment of Present Value of Project and NVP to Entrepreneur

=> Entrepreneurial Finance, by Janet Kilholm Smith, Richard L. Smith and Richard T. Bliss & Anderson Graduate School of Management - UC Riverside

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